Background :
Bahrain or Bahrein, officially Kingdom of Bahrain (Mamlakah al-Bahrain in Arabic), independent country in western Asia, comprising 33 islands on the western side of the Persian Gulf. The main island, also called Bahrain, lies 24 km (15 mi) east of Saudi Arabia and 29 km (18 mi) west of Qatar. The capital and largest city of Bahrain is Manama.

Capital :Manama

Area 707 sq km
273 sq mi

Economy :
Since the discovery of crude oil on the main island in 1932, oil production and refining have dominated Bahrain’s economy. Natural gas occurs along with the crude oil and comes out of the same wells. For a long time, the gas from the wells was allowed to escape into the air. In 1979 the government set up a company to collect and process the natural gas into propane, butane, and naphtha. Depletion of Bahrain’s limited oil reserves has prompted efforts to develop other industries. For example, in the 1970s the government established Aluminum Bahrain (ALBA); aluminum smelting remains an important industry. In a further effort at diversification, the government has promoted tourism.

The government controls the oil and gas industry, most heavy manufacturing, and the bulk of the transportation and communications sectors, but it has undertaken efforts to privatize the economy. Banking, light manufacturing, and commerce are in private hands.

Bahrain’s gross domestic product (GDP) was $8 billion in 2000, or $11,540 per capita. Services, including public administration, banking, and tourism, accounted for 59 percent of the GDP. Industry accounted for 40 percent, with manufacturing responsible for 19 percent and oil and gas extraction for most of the remainder. Agriculture contributed 1 percent of the GDP.

Of Bahrain’s labor force of 312,401 people in 2000, 54 percent worked in industry, 43 percent in services, and 1 percent in agriculture. Almost 60 percent of the labor force was foreign-born, because native Bahrainis generally lacked the skills required for employment in many fields and many foreign workers were willing to work for low wages. Unemployment, estimated at 15 percent in 1996, remains a serious problem. Since the mid-1990s, unemployment has contributed to widespread, sometimes violent, political discontent among Shias, who are traditionally less advantaged and more prone to unemployment than the Sunnis.

Like its Gulf Arab neighbors, Bahrain has aimed for agricultural self-sufficiency, and it now produces about 75 percent of the fruits and vegetables that its population consumes. The main crops are dates, tomatoes, onions, and melons. The country also produces a large part of its milk, poultry, and egg requirements.

Beginning in the mid-1960s the government encouraged the growth of small-scale manufacturing. To this end, it offered tax incentives and low-interest loans to entrepreneurs. Factories in Bahrain produce plastics, ceramic tiles, paper products, and carbonated beverages.

Local time :
GMT + 3

Language :
Arabic is the official language. English is widely spoken and used in business.

Weights & Measures :
The Metric System Gross Domestic Product (GDP): BD 2,015.8 million (1996) Gross National Product (GNP): BD 1,891.8 million (1996)

Per Income:
BD 2,826 (1996)

Electricity: 220 Volts, 50 Cycles, AC throughout Bahrain except Awali which has 110 Volts, 6O Cycles.

People :
Population 667,238 (2003 estimate)

Population Growth :
Population growth rate 1.61 percent (2003 estimate)
Projected population in 2025 865,890 (2025 estimate)
Projected population in 2050 973,412 (2050 estimate)

Population density 944 persons per sq km (2003 estimate)
2,446 persons per sq mi (2003 estimate)

Urban/rural distribution
Share urban 92 percent (2001 estimate)
Share rural 8 percent (2001 estimate)

Largest cities, with population
Manama 162,000 (1999)

Ethnic groups :
Bahraini Arab 63 percent
Asian 13 percent
Other Arab 10 percent
Iranian 8 percent
Other 6 percent

Religious Affiliations :
Shiite Muslim 60 percent
Sunni Muslim 25 percent
Christian 9 percent
Other 6 percent

Health and Education :
Life expectancy
Total 73.7 years (2003 estimate)
Female 76.2 years (2003 estimate)
Male 71.3 years (2003 estimate)


Infant mortality rate 19 deaths per 1,000 live births (2003 estimate)
Population per physician 998 people (1999)
Population per hospital bed 345 people (1997)

Literacy rate
Total 89.1 percent (2003 estimate)
Female 85 percent (2003 estimate)
Male 91.9 percent (2003 estimate)

Education expenditure as a share of gross national product (GNP) 3.7 percent (1999-2000)
Number of years of compulsory schooling 9 years (1998)
Number of students per teacher, primary school 18 students per teacher (1999-2000)

Government :
Form of government Monarchy
Voting qualifications Not determined
Constitution 26 May 1973, effective 6 December 1973; dissolved in 1975

Armed Forces :
Total number of military personnel 10,700 (2001)
Military expenditures as a share of gross domestic product (GDP) 4.8 percent (2001)

Currency :
The Bahraini Dinar is fixed to the US dollar at the rate of: US$ 1=BD. 0.378. The unit of currency is the Bahraini Dinar (BD) which is divided into 1000 fils: Notes: 500 fils, 1, 5,10, 20 dinars. Coins: 1, 5,10, 25, 50, 100 fils. There are no restrictions on import or export of currency.

Business Hours :
Friday is the weekly day of rest, when nearly all business is closed, and most shops. Many businesses close early on Thursday. Thursday and Friday as weekend applies to all branches of the Civil Services and schools.
Government Offices: 7:00 to 14:15 Saturday to Tuesday 7:00 to 14:00 Wednesday.
Commercial Organizations: 7:00 -12:00 and 14:30 -17:30 Saturday to Thursday.
Shopping Hours: 08:00 -12:30 and 15:30 -18:30 Saturday to Thursday. Some shops are open in the souk on Fridays for a few hours.

Banking :
Financial services form an important element in the economy of Bahrain. The country's time-zone, intermediate between the East and the West, is a major asset in international transactions. In 1975, offshore Banking Unit (OBUs) were established. Today Bahrain is the banking and financial centre in the Middle East with more than 180 financial institutions on the island.

Banking Hours : 07:30 -12:00 Saturday to Wednesday 15:30 -17:30 Saturday to Wednesday (for some banks) 07:30- 11:00 Thursday

Communications :
Bahrain's telecommunications services are among the most advanced in the world, with direct dialing to most countries. Postal services are speedy and reliable. Bahrain International Airport and the port of Mina Salman are to international standards and well serviced. When calling Bahrain the country code is +973, followed by the local six digit number. There are no town or area codes.

Bahrain Stock Exchange :
Opened in June 1989, the Bahrain Stock Exchange ( BSE ) has secured a place on the map of Middle East share market. The stock exchange has several key advantages. The biggest is its close association with the Saudi economy, a 30-minute drive away across the King Fahad Causeway. Another is that Bahrain has been in the global finance business longer than any other Gulf state. In April 1995, a new ministerial resolution expanded the range, of governing brokerage firms. As a result, Faysal Islamic Bank and Bank of Bahrain & Kuwait have set up their own brokerage house. The BSE hopes more brokers will follow. In the same year, BIB was given approval to set up the Dilmun Index Fund, which invests exclusively in BSE-listed stock. This fund is open to investors of any nationality.